Good News
Updates from Government Agencies
A year of achievements
After just a year in office, the Aquino administration
is well on track in fulfilling its Social Contract with
the Filipino people. Zero-based
budgeting, combined with a
commitment to prudent spending,
has made possible funding for more programs to reduce
poverty and eradicate corruption–without raising taxes.
The 1.816 trillion peso proposed budget for 2012 just
approved by the President commits more than a third
of the funds to social services with an emphasis on
the Pantawid Pamilyang Pilipino Program (4Ps), basic
education, and public health.
Far from the practice of haste, waste, and routine
spending in the past, the Department of Budget and
Management is now committed to ensuring every peso
is spent wisely and prudently so the people know their
government is working for them.
This is being replicated throughout your government,
where contracts prejudicial to the public interest have
been identified and stopped, and selfish perks eliminated
for officials. PAGCOR, for instance, because of better
management, has managed to save hundreds of millions
of pesos which have been used to fund social services.
For its part, the DOST has showed remarkable
resourcefulness as it transforms the water hyacinth from
a nuisance vegetation that causes floods into something
useful and profitable: handicrafts and bioethanol.
Its continuing efforts has also given a human face to
science-based solutions to community concerns, from
timely weather bulletins, to ensuring Filipino infants in
the poorest municipalities are nourished properly with
low-cost vitamin-fortified cereals.
More and more government agencies have heeded the
call for good governance. All these efforts show that
the Aquino administration will not be deterred from
continuing its campaign for achieving inclusive growth,
and transforming our hopes into better lives.
US supports ASEAN unity in South China
Sea dispute
Foreign Affairs Secretary Albert del Rosario’s diplomatic
efforts in Washington was cited by and opinion article in
the Wall Street Journal as he conducted successful talks
last week in relation to the 1951 Mutual Defense Treaty
between the Philippines and the United States.
Continued on page 3
July 1, 2011
Vol.1 / No.10
President Benigno S. Aquino III delivers his message during the launching of
“PILIPINAS NATIN” at the Philippine Sports Commission (PSC) – Philsports
Complex along Meralco Avenue in Pasig City on Thursday (June 30). PILIPINAS
NATIN underlines the importance of unity and solidarity among all Filipinos that
transcends political or sectoral affiliations. (Malacañang Photo Bureau)
PNoy approves 1.816-Trillion proposed
budget for 2012
A third of the proposed budget to benefit the
poor through increased funding for social services
PRESIDENT Benigno S. Aquino III and the Cabinet have
approved the proposed P1.816-trillion national budget for
2012. The proposed budget is 10.4 percent higher than
the current year’s budget of P1.645-trillion, fully reflecting
the Aquino administration’s commitment to fulfill its Social
Contract with the Filipino People.
Continued on page 4
Government quality spending picks up
Abad: Aquino administration makes every Peso count
BUDGET Secretary Florencio B. Abad welcomed reports
from the Bureau of Treasury indicating that government
spending has picked up and will continue on this trajectory
during the remaining months of this year. He also noted an
improvement in both the flow of cash and the quality of
public goods and services delivered.
“We’re seeing a turnaround towards quality government
spending. After government agencies have conducted
a thorough review of the costs and efficiencies of their
programs and projects, they are now ready to spend with
much impact,” Abad said.
Continued on page 2
Presidential Communications Development and Strategic Planning Office
July 1, 2011 Vol.1 / No.10
Good News
Updates from Government Agencies

Government quality...(continued)

“Our fiscal consolidation efforts so far have been

acknowledged by the recent credit rating upgrades.
We need to sustain this through fiscal responsibility,
particularly through quality spending that leads to direct,
immediate, and substantial support to the poor,” he
added.

According to the Treasury, disbursements in May amounted

to P129.7 billion or an increase of 15.7 percent from
that in April which stood at P112.1 billion. Furthermore,
the Notice of Cash Allocation (NCA) utilization rate has
markedly improved to 90.9 percent as of May, from 82.1
percent in March and 88.7 percent in April.

Cumulatively, the out turn of P591.0 billion as of May

was lower by 10.7 percent year-on-year, but this is an
improvement compared to the year-on-year declines of
12.7 percent as of March and 11.6 percent as of April.
Abad noted that the comparative period last year was
“beyond normal,” considering the infusion of election-
related spending and the previous administration’s
spending spree in its last semester in power.

More importantly, Abad said that the Aquino

administration’s brand of governance and economic
management is different because it makes sure that every
peso spent counts.

For one, infrastructure agencies, particularly the

Department of Public Works and Highways (DPWH),
have thoroughly reviewed projects and their costs and
implemented competitive and transparent bidding
processes. These efforts, according to Abad, have so far
led to savings worth P2.1 billion and have ensured “that
the people’s money will widen and thicken roads, not
fatten the pockets of a few.”

Key social services agencies like the Department of

Education and the Department of Health are also looking
at new modes of constructing school buildings and health
centers. With the assistance of the DPWH, they are
considering the use of pre-fabricated materials, as well as
the clustering of the building and construction projects.
“This will enable contractors to achieve scale and greater
efficiency,” Abad said.

Abad added that the Conditional Cash Transfer program

has been proceeding faster than programmed, with
all P2.34 million targeted households for this year
expected to already be receiving their cash grants by this
September.
Budget and Management Secretary Butch Abad at the First Emilia Boncodin
Day at the Department of Budget and Management (DBM) head office in San
Miguel. (Malacañang Photo Bureau)

2 Presidential Communications Development and Strategic Planning Office

July 1, 2011 Vol.1 / No.10
PAGCOR income hits P3.03 B
Highest revenues in history to ensure social spending of administration on track
ONLY 10 months after new management assumed office,
the Philippine Amusement and Gaming Corporation
(PAGCOR) posted record-breaking gross revenues of
P3.03 billion last May, the highest ever in PAGCOR’s 25-
year history.
PAGCOR Chairman and CEO Cristino L. Naguiat, Jr. said
the state-run gaming firm increased its revenues by
P297 million in May 2011 compared to the same period
last year. “We generated more than P2.01 billion from
our gaming operations and P1.02 billion from regulated
gaming operations like commercial bingo and licensed
casino operations, among others,” he noted.
The agency’s May revenues brought to P14.16 billion the
total income of PAGCOR during the first five months of the
year. This is P1.34 billion higher than the gross earnings of
PAGCOR from January to May 2010.
PAGCOR’s remarkable performance, according to Naguiat,
was due mainly to management’s deft maximization
of resources, application of prudent fiscal policies, and
continued efforts to enhance Casino Filipino’s gaming
facilities.
Due to fierce competition, PAGCOR’s ultimate goal is to
transform the casinos from being mere gaming centers
into wholesome recreation and entertainment centers for
local and foreign tourists alike.
Under Naguiat’s leadership, PAGCOR has significantly cut
back on operating expenses since 2010. This includes a
US supports...(continued)
Del Rosario’s diplomatic offensive has resulted in the US
showing solidarity with the Association of Southeast Asian
Nations (ASEAN). According to the piece, the U.S. supports
a united ASEAN in its dispute with regional powerhouse
China over claims in the South China Sea. Recently, the U.S.
Senate passing a resolution deploring China’s use of force
against Philippine and Vietnamese and urging a peaceful
resolution to territorial disputes.
This echoes the sentiments of the Singaporean Foreign
Ministry who asked China to “clarify its claims with more
precision as the current ambiguity as to their extent has
caused serious concerns in the international maritime
community.”
3 Presidential Communications Development and Strategic Planning Office
Good News
Updates from Government Agencies
15 percent reduction in operation expenses which has, so
far, translated to savings of P874 million from January to
May this year.
With higher revenues and bigger savings, PAGCOR
was able to substantially increase its contributions to
the national government. During the period in review,
PAGCOR’s remittances to the National Treasury, the
Bureau of Internal Revenue and the Philippine Sports
Commission amounted to P1.105 billion, up by almost
P37 million compared to the May 2010 remittances of
P1.068 billion.
PAGCOR also remitted portions of its net income to other
legal beneficiaries like the President’s Social Fund, the
Board of Claims, host cities and the socio-civic projects
of the government. In May alone, P264 million has been
remitted to these beneficiaries.
Heady revenues have also allowed the state-run gaming
firm to help shore up the number of classrooms in the
country. PAGCOR has promised to turnover to the
Department of Education (DepEd) 1,000 fully-equipped
classrooms before December 2012 which represents 10
percent of the 10,000 classrooms the DepEd is capable of
building every year.
The classrooms will have provisions for desks or
armchairs, books, and other educational materials. Part
of the PAGCOR’s mandate is to generate revenue for
the country’s socio-civic, infrastructure, and national
development programs.
According to the article, the US and ASEAN need to review
the Declaration on Conduct of Parties in the South China
Sea ratified in 2002, which China has “routinely violated.”
It suggests a “more rigorous code of conduct that spells
out the current status quo and how ships and aircraft must
behave to respect it.”
The article said that past efforts of the ASEAN to negotiate
as a bloc with China over the disputed area was scuttled
by former President Gloria Macapagal-Arroyo in 2004 who
gave up Philippine claims to enable joint oil exploration.
Source: Wall Street Journal
http://online.wsj.com/article/SB10001424052702304447804576413193
946912026.html?mod=googlenews_wsj
July 1, 2011 Vol.1 / No.10
Good News
Updates from Government Agencies

PNoy approves...(continued)

“This is a budget that is focused on achieving results: TOP DEPARTMENTS

that the dividends of good governance reach the poor
in a direct, immediate and substantial way,” said Budget
Secretary Florencio B. Abad. The proposed budget is
focused on the five key result areas of the Social Contract:
anti-corruption and good governance, poverty reduction
and the empowerment of the poor, inclusive economic
growth, just and lasting peace and the rule of law, and
integrity of the environment.
He said social services–mainly basic education, public
health, and the Pantawid Pamilyang Pilipino Program
(4Ps) –will get the lion’s share of the proposed budget of
31.6 percent or P573.5 billion, which is an increase of 10
percent over its current budgetary allocation of P521.4
billion.
To support rapid, inclusive, and sustainable growth, the
economic services sector will receive the second biggest
allocation which is 24.3 percent or P442.1 billion of the
budget, an increase of 22.2 percent over its P361.9 billion
this year. In particular, infrastructure and other capital
outlays—especially those supporting agriculture, tourism
and industrial development—have been given greater
emphasis with a 27.2 percent increase to P243.9 billion in
2012 from P191.7 billion.
The general public services sector will receive P322.3
billion or 17.7 percent of the 2012 proposed budget, or
an annual increase of 11.9 percent. The defense sector
will receive P111.4 billion or 6.1 percent of the proposed
budget, or an increase of 9.9 percent.
Of the 10 departments with the largest budgetary
allocation, the Department of Education will remain at the
top with P237 billion, 14.4 percent more than its P207.3-
billion budget in 2011, to support in filling critical resource
gaps in classrooms, teachers, and learning materials.
The Department of Public Works and Highways will receive
the second largest budgetary allocation with P125.9 billion
to support the paving of all national primary and secondary
roads and bridges within President Aquino’s term.
Meanwhile, the Department of Social Welfare and
Development will receive the largest budgetary increase
at 56 percent from P34.4 billion to P53.6 billion to support
3 million Pantawid Pamilyang Pilipino Program (4Ps)
household beneficiaries in 2012 compared to this year’s
2.3 million beneficiaries.
The Department of Agriculture’s budget for 2012 also
increased by more than half from P35.2 billion in 2011 to
P52.9 billion. This will be used to restore irrigation systems
which will support the country’s rice self-sufficiency goals.
“The 2012 budget is the first budget that will be fully-
prepared, legislated, and executed under the Aquino
administration so we want to really ensure that the Aquino
brand of governance is fully reflected in the National
Budget,” Abad said, noting that it will be submitted to
Congress on July 26, a day after the President’s State of
the Nation Address.

Meanwhile, to sustain fiscal consolidation efforts, the share

of the debt burden on the national budget will decrease to
20.2 percent or P367.2 billion, from 22.6 percent or P372.1
billion of the 2011 budget. A fiscal deficit of P286 billion or
2.6 percent of gross domestic product (GDP) is targeted
in 2012, lower than this year’s target of P300 billion or 3
percent of GDP.

“More importantly, we ensured that every peso counts.

First, we sustained zero-based budgeting to promote
efficiency and effectiveness in spending. With this, we
were able to scale-up spending on programs and projects
that are aligned with the Social Contract,” Abad said.

Transparency and accountability are also hallmarks of

this budget, according to Abad. “We fleshed-out lump-
sum funds in the budget, tightened the use of savings
and ensured direct budgetary release to the smallest
implementing units,” he added.

Abad noted that the President has approved of the

proposed budget, subject to some modifications and Budget Secretary Florencio Abad during a press conference held in one of the
local convention centers in Butuan City. (PIA-Caraga)
clarifications.

4 Presidential Communications Development and Strategic Planning Office

July 1, 2011 Vol.1 / No.10
Good News
Updates from Government Agencies

DOST water hyacinth harvesters to de-clog freshwater bodies starting July

Potential uses of plant include handicrafts, garments, and energy

SCIENTISTS and engineers at the Department of Science and The objective is not to eradicate the water hyacinth but
Technology (DOST) are in a race to control the invasive water rather to control its growth by cleaning rivers regularly,
hyacinth that are clogging freshwater bodies in the country. according to Executive Director Amelia P. Garcia of the
Philippine Council for Industry, Energy and Emerging
“We are looking at the water hyacinth problem in two ways: Technology Research and Development (PCIEERD).
how to remove it and how to use it,” Science and Technology
Secretary Mario G. Montejo said. As such, PCIEERD is considering the aquatic plant as a
potential material for biogas production to enhance
He added that water hyacinths may be used for handicrafts, integrated waste management system at the municipal
garments production, and as a material for bioethanol. level.

The Department’s immediate concern, however, is to help Other than a potential source of energy, water hyacinth can
de-clog major river systems like the Rio Grande de Mindanao, be processed into animal and fish feed, charcoal briquettes,
the second largest river system in the Philippines, which is fiber board, textile fiber, organic fertilizer, and other
filled with water hyacinth. handicrafts, said Guevarra.

Innovation is necessary, according to the DOST, considering
the inefficiency of the current system that involves backhoes
retrofitted on barges. Though similar to commercially
available models, the DOST is scheduled to test a locally-
developed water hyacinth harvester by July that is adapted
to Philippine conditions and built using readily available
components.
Previously, DOST’s Philippine Council for Aquatic and Marine
Research and Development provided technical support to
the province of Sultan Kudarat, which used water hyacinth
from Lake Buluan to spur province-wide cottage industries.
The products of lake-side residents of the province include
bags, slippers, and other fashion items that have augmented
their traditional sources of livelihood.

DA invests P415 M irrigation, agri projects in Samar

Set to benefit 2,000 farm families and help Samar rise from poverty

THE Department of Agriculture (DA) is investing an initial
P415 million in Samar to jumpstart the development of
its agriculture and fisheries sector, as part of the recently
launched Northern Samar convergence agro-enterprise
cluster.
Agriculture Secretary Proceso J. Alcala - who led the launch
in Catarman over the weekend - said the bulk of the
investments will go into the completion and repair of four
irrigation systems, amounting to P380 million, while the
balance of P35 million is earmarked for various agri-fishery
projects.
Alcala said Samar should not remain poor as it is endowed
with rich agriculture and marine resources. He said in the
medium term, with sustained investments, political will and
strong cooperation among all stakeholders, Samar should
rise from being one of the poorest provinces in the country.
This development initiative is enabling Samar to produce
sufficient amounts of food, particularly rice, by making
more farmlands productive through the establishment
of irrigation systems and teaching farmers modern and
sustainable rice production technologies, Alcala said.
The P380 million fund from the DA’s National Irrigation
Administration (NIA) is allotted for the completion of
two irrigation projects in Catarman-Bobon (P210 M) and
Bugko, Mondragon (P150 M), restoration of the Macagtas
irrigation system in Catarman (P15 M), and construction
of 120 kilometers of irrigation canals of Catubig Dam in
Northern Samar (P5 M).

NIA Administrator Antonio Nangel said that when the four

projects are completed, these will irrigate an additional
7,140 hectares that could be planted twice a year and will
benefit 2,000 farm families.

At a conservative yield of four tons per hectare per season

and two crops a year, the 7,140 hectares would produce
an additional 57,120 metric tons (MT) of palay annually.
Agriculture Secretary Proceso Alcala (3rd from left) witnesses as NIA This projected harvest represents roughly 23 percent of the
administrator Antonio Nangel (2nd from left) hands over a certificate of
turnover of four irrigation projects to Northern Samar Governor Paul Daza.
total palay harvest of the three Samar provinces at 250,127
Looking on is DA Region 8 Director Antonio Gerundio. (DA) MT in 2010, Nangel said.
5 Presidential Communications Development and Strategic Planning Office
July 1, 2011 Vol.1 / No.10
Good News
Updates from Government Agencies

PINOY project of DOST to reduce malnutrition incidence for Filipino infants

THE Department of Science and Technology (DOST)
has launched a comprehensive program to alleviate
malnutrition in children aged 6 to 35 months in the poorest
municipalities of the country.
Dubbed the “PINOY Project” the DOST initiated this
specifically for children in this age group because it is
“the most critical period in a child’s life,” said Science and
Technology Secretary Mario G. Montejo.
According to the DOST’s Food and Nutrition Research
Institute (FNRI), any inadequacy in a child’s diet in this
period will result in irreversible long-term physical and
mental damage, so nutrition intervention is very important.
The first component is the development of food blends
that will provide important nutrients, such as protein
and carbohydrates, to malnourished children in high
malnutrition incidence communities. The blends come
in 20-gram packs, with the rice-mongo and rice-mongo-
sesame blends designed for children aged 6-11 months and
the rice-mongo curls designed for one year olds.
This is followed by 120 days of continuous feeding of these
foods, culminating in the training of parents and caregivers
on various ways to improve the nutritional intake in
households. Discussed in these classes are important topics
such as breastfeeding, menu and meal planning, sanitation
and hygiene, and growing vegetables, among others.

PINOY, which stands for Package for the Improvement of
Nutrition of Young children, was recently launched in Leyte
which belongs to Region 8 (Eastern Visayas) where a 15.7
percent malnutrition rate was recorded last year, a slight
improvement from 18.7 percent in 2009.
For the project, DOST has devised a three-pronged approach
that develops complementary foods, feeds malnourished
children aged 6-35 months, and educates parents as well
as caregivers on proper nutrition.
DOST-FNRI’s Dr. Julieta Dorado, PINOY project leader,
explained that the initiative will also monitor any changes
or developments that resulted from the program, including
the progress of the children’s weight, consumption
of complementary foods, and knowledge levels of
participating mothers in terms of nutrition. Their findings
will serve as basis in the design and implementation of a
community-based nutrition intervention for infants and
young children.

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6 Presidential Communications Development and Strategic Planning Office